AI automation firm iLearningEngines hacked, $250K stolen

iLearningEngines, an AI-powered platform for learning and work automation, has disclosed a breach. The hackers misdirected a $250,000 wire payment.

In a filing with the US Securities and Exchange Commission, iLearningEngines said an ongoing investigation into a cybersecurity incident has revealed that a threat actor illegally accessed the company’s environment and certain files on its network.

Hackers also “misdirected a $250,000 wire payment and deleted a number of email messages. The wire payment has not been recovered.”

The company warns investors that the cybersecurity incident will have a material impact on its operations during the quarter ending December 31st, 2024. However, it is not expected to have a material impact on full-year 2024 results.

iLearningEngines says it may continue to incur certain expenses related to the incident and is exposed to other related risks, such as diversion of management’s attention, potential litigation, changes in customer or investor behavior, and regulatory scrutiny.

iLearningEngines, which is based in Bethesda, Maryland, continues to assess the impact on the systems and data with the help of a forensic firm and other external advisors.

The filing indicates significant other challenges the company faces. Following allegations raised by short-seller Hindenburg Research, iLearningEngines said its financial statements from 2022-2024 should no longer be relied upon. The company also announced leadership changes and a new interim CFO and COO. Also, on October 17th, 2024, the company received an SEC subpoena seeking various documents and information.

iLearningEngines' share price plummeted 27% in a single trading session. Its market value is now $154.6 million.